Next Gen Shoppers Turn to ‘Buy Now, Pay Later’ to Reclaim Their Financial Freedom
Afterpay’s latest report explores how inflation is impacting consumer spending habits and why they’re adopting technologies like buy now, pay later (BNPL) to mitigate risk.
Economic uncertainty brought on by supply chain disruptions and stock market dips have driven up prices to a 40-year high, which has exacerbated price sensitivity amongst consumers. However, Millennials and Gen Z have shown resilience in the face of inflation by embracing ‘Buy Now, Pay Later’ (BNPL) platforms as a budgeting solution to help them navigate the current economic climate.
In partnership with Coresight, we unearthed North American consumer behavioral patterns in the midst of rising inflation as well as the pivotal role BNPL plays amongst next generation shoppers. According to the research, 39% of Millennials and Gen Z have used BNPL more due to COVID-19 and inflation, which increased to 49% when looking exclusively at Gen Z consumers.
The report will cover the following topics:
- Current use and adoption of BNPL amongst Millennial and Gen Z shoppers
- Consumer sentiment towards spending
- The shopping and lifestyle categories Millennial and Gen Z prefer to spend on
By 2030, Millennial and Gen Z share of retail spend will increase to 48% as these groups continue to mature and enter the workforce. Any merchant looking to boost spending and capture this powerful group of consumers should explore value-seeking solutions such as BNPL and leverage it as a marketing channel to acquire new customers during this challenging time period.
Reach out to our team today to learn how Afterpay can help you grow your business.
(1) Source: Coresight x Afterpay, The Inflation Pressure Cooker: How North American Consumers Are Responding, Apr 2022
(2) Source: Accenture x Afterpay, Next Gen Index, Feb 2022